Nigeria's Flour Mills to borrow to double cement capacity

Flour Mills of Nigeria plans to borrow between US$400m-500m to construct a new cement plant which will double its existing 2.5Mta capacity, its chief finance officer said.

Jacques Vauthier told Reuters the conglomerate had appointed financial advisers and banks to raise a term loan from the local market for the construction of the plant. He said the details of the loan were still being finalised.

The new cement plant will be completed by 1Q16, Vauthier said.

Nigeria's biggest cement firm Dangote Cement and Flour Mill's rival recently re-opened its Gboko cement plant after it was shut two months ago due to over-supply in the market, bringing back a fifth of its 20Mta capacity.